(c) (i) Explain the capital gains tax (CGT) implications of a takeover where the

(c) (i) Explain the capital gains tax (CGT) implications of a takeover where the consideration is in the form. of

shares (a ‘paper for paper’ transaction) stating any conditions that need to be satisfied. (4 marks)

(c) (i) Paper for paper rulesThe proposed transaction broadly falls under the ‘paper for paper’ rules. Where this is the case, chargeable gains do notarise. Instead, the new holding stands in the shoes (and inherits the base cost) of the original holding.